Related Articles

Timothy Bond, chief Asia economist at Merrill Lynch noted: "Unlike their counterparts in Europe and the US, the financial problems are less deep-rooted and widespread in Asia. This in part explains why the response from Asian policy makers has not been drastic".

Six out of 12 Asian central banks have cut their interest rates in response to the crisis. A number of countries have also taken steps to guarantee bank deposits for savers in order to reassure the public.

Australia, New Zealand and Hong Kong have promised this week to guarantee all deposits, while Singapore, Taiwan, Indonesia and the Philippines have all promised to guarantee between $5,000 and $200,000.

The Japanese government has said it is considering a blanket scheme for protecting deposits, an unprecedented move.

Recent rumours about the health of two banks, in Hong Kong and India, have triggered old-fashioned bank runs, with thousands of savers queuing up to withdraw money. There are also worries about "invisible" bank runs as internet bankers remove their savings.

Meanwhile, President Lee Myung-bak of South Korea was the latest to call for reform of the world's financial institutions. He said a new international body should be set up to deal with cross-border economic problems and "come up with responses".

Asian markets fell again yesterday after the euphoria of the West's bail-out package faded and investors took profits. The Hang Seng index in Hong Kong lost 5pc and markets in Shanghai, South Korea and Singapore also sank.